System Updates

NEW: Using FIA Tech OCR System for Submitting Additional Client Data, and Final September 30 Compliance Date

We are pleased to announce that clearing firms using the FIA Tech system to meet the CFTC’s mandate for automated Ownership & Control Reporting (OCR) may also use this system to satisfy CME Clearing’s requirement for additional client data for risk and default management.

FIA Tech has enhanced their OCR system to allow firms to specify the CGM account for each trading account.  For futures accounts, this is the account ID that the firm uses when submitting Customer Gross Margining (CGM) position files to CME Clearing, and for swaps accounts, it is the analogous value used for rolling up trading accounts to the beneficial owner level for margining.

In addition to specifying the CGM account for each trading account, firms will create a Margin Accounts Master (MAM) file from their bookkeeping system, in the standard FIXML format, and transmit this file to FIA Tech.  This file need not have any of the additional client data, but it will provide an automated means to identify client accounts with positions cleared at CME Clearing.  FIA Tech will then use the data from the MAM file to generate the full set of additional client data and transmit this to CME.

Sungard also has enhanced its GMI bookkeeping system to generate the MAM file, so for firms using both GMI and FIA Tech, the only work required should be to provide the CGM account for each trading account, and to generate and transmit the MAM file to FIA Tech each day.

Note that the use of the FIA Tech system is optional. As previously announced, firms may directly submit the required additional client data for risk and default management to CME Clearing. For futures accounts, data may be submitted using either the Margin Accounts Master file or by adding it to the Customer Gross Margining position file.  For swaps accounts, data may be submitted using either the Margin Accounts Master file or by adding it to LSOC Collateral Value Report datafiles.  Firms planning to directly submit this data to CME Clearing, but not yet doing so, may begin at any time.

Because many firms have requested the ability to leverage the FIA Tech system for providing the additional client data, the final data for compliance with this reporting requirement is being reset to match the OCR deadline of Wednesday, September 30, 2015.

For more information please see Clearing Advisory 15-049 and Clearing Advisory 14-127.

CME Clearing may be reached at 312-207-2525.  FIA Tech may be reached at ocr.support@fia-tech.com.

Leap Second Event

This advisory describes CME Clearing’s procedures for handling the “Leap Second Event” scheduled to take place at 18:59:59 CDT (19:59:59 EDT), Tuesday, June 30, 2015 (trade date Wednesday, July 1, 2015). The Leap Second Event is a one-second clock adjustment that is periodically applied to Coordinated Universal Time (UTC) by the International Earth Rotation Service to keep in synch with mean solar time. See additional information at http://tycho.usno.navy.mil/leapsec.html.

CME Clearing’s system clock(s) will be synchronized with UTC during the Leap Second Event timeframe. CME Clearing applications are largely unaffected and will be available during the leap second timeframe. Firms are encouraged, however, to complete their end of day processing before 18:55:00 Central time. And there will be minor changes to the end of day timings:

·         Any PCS or CGM datafiles submitted between 18:55:00 and 19:05:00 Central time will be held and will be processed at 19:05:00.

·         The normal end of day 19:00:00 Central time deadline for completion of trade processing will be extended to 19:20:00. This includes the deadline for completion of futures transfers for portfolio margining between interest-rate futures and interest-rate swaps.

·         The deadline for submitting PCS files for CME and CBOT products will be extended from 19:30:00 to 19:45:00 Central time. The deadline for submitting PCS files for NYMEX and COMEX is unaffected and remains at 18:00:00 Central time.

·         The deadline for submitting CGM files is unaffected and remains at 20:00:00.

For information and about CME Globex impacts, see the Frequently Asked Questions (FAQ).

Additionally, the FIA Market Technology Division is working closely with exchanges, vendors, and front end trading system providers worldwide to ensure the Leap Second Event occurs and passes in a seamless manner. See additional information from the FIA.

Please expect to see periodic reminders and/or updates regarding this event. If you have any questions, please contact CME Clearing at (312) 207-2525, or ccs@cmegroup.com.

Removal of RC4 Cipher Suites- Effective June 6th

CME Group is committed to information security. To deliver the best security and customer experience, we are eliminating support of the RC4-based cipher suites for CME Group web-based applications, APIs, and services in Certification, New Release, and Production environments.

As of this change, customers relying on RC4 cipher suites will no longer have access to these web-based applications, APIs, and services.

RC4 cipher suites support will be removed as follows:

·         Production: Saturday, June 6, 2015 at 6:00 a.m. (CT)

Customers following CME Group Web Browser Standards should not be impacted by this change. However, if customers connect through a proxy, they should ensure their proxy utilizes one or more of these CME Group supported ciphers:

·         TLS_RSA_WITH_AES_256_CBC_SHA256

·         TLS_RSA_WITH_AES_256_CBC_SHA

·         TLS_RSA_WITH_AES_128_CBC_SHA256

·         TLS_RSA_WITH_AES_128_CBC_SHA

The change in Certification and New Release environments is complete. Customers are encouraged to verify connections to those environments continue to function properly.

CME Group Deliveries Plus – SMART Click Migration

Effective June 5, 2015, the CME Group Deliveries Plus application will transition to SMART Click. SMART Click is a self-managed profile through which access to CME Group applications is granted.

Here are the steps required to maintain access:

1.     Register for a SMART Click ID

2.     Activate your SMART Click ID

3.     Beginning on May 27, 2015, SMART Click for New Release will be available. Claim & Link your Legacy ID to your SMART Click ID: Login and click on the Deliveries Plus application under the Post Trade tab.

For SMART Click support, troubleshooting or if you miss the claim deadline, contact Enterprise Application & System Entitlements (EASE):

312.456.1560 (United States)
+44 203.379.3802 (Europe)
+65 6593.5536 (Asia)
EASE_Clearing_Application_Request@cmegroup.com

Deliveries

CME Group Delivery Dates for June 2015

See the delivery dates for June 2015 Chicago Mercantile Exchange Inc., Chicago Board of Trade, NYMEX, COMEX, and DME contracts.

If you have any questions, please contact CME Clearing Deliveries at (312) 930-3172 or clearinghousedelivteam@cmegroup.com

Events & Announcements

NEW: CME OTC IRS USD Valuation Curves - June 8, 2015

As part of our continuing efforts to ensure a prudent risk management process for all products, CME Clearing will be incorporating CME-specific swap observations in the end of day USD valuation curves in our Production environment on Monday, June 8, 2015. This change was originally announced on May 13, 2015 and has been available in our testing environment since June 1, 2015. 

Please direct any inquires to OTCValuations@cmegroup.com.

NEW: Product Modification Summary: Delist Soybean-Corn Intercommodity Ratio Options

Effective June 1, 2015, the Board of Trade of the City of Chicago, Inc. (CBOT or Exchange) delisted Soybean-Corn Intercommodity Ratio Options (Clearing Code CSI) from the CBOT trading floor.

There is currently no open interest in this product.

NEW: Product Modification Summary: Delist Calendar Swaps for SRW Wheat, HRW Wheat (also known as KC Wheat), Corn, and Soybeans

Effective June 1, 2015, the Board of Trade of the City of Chicago, Inc. (CBOT or Exchange) delisted the following products from CME ClearPort.

There is currently no open interest in these products.

Canadian Provincial Debt, Australian Sovereign Debt, and Singapore Sovereign Debt

CME Clearing (CME) announces the addition of Australia and Singapore to our list of acceptable foreign sovereign debt. CME also announces the addition of Canadian provincial debt from Ontario and Quebec. Australian and Singapore sovereign debt, and Canadian provincial debt are acceptable for Base, CDS, and IRS performance bond requirements and are part of Category 4 assets for Base and IRS and Category 3 assets for CDS.  These additions to our acceptable collateral list will be effective July 20, 2015, pending regulatory approval.  

Please see the applicable haircuts and limits.

Product Modification Summary: JPYUSD Futures Tick Reduction

Effective Sunday, June 21, 2015 for trade date Monday, June 22, 2015, and pending all relevant CFTC regulatory review periods, please be advised that the Chicago Mercantile Exchange, Inc. (CME or Exchange) will amend the minimum price increment for Japanese Yen/US Dollar Futures. The minimum tick is changing from 0.000001 to 0.0000005.

DPLs for outright Futures and the Spreads will not change and will remain at a current precision of 7.

Monthly-to-Daily Conversion for Power Contracts Begins on May 29, 2015

Beginning with the June 2015 contract month and pending regulatory approvals, we are introducing an important enhancement in the way that the majority of monthly NYMEX power contracts are processed at maturity. Please see Special Executive Report 7253RR.

Currently, the last day of trading for these monthly cash-settled contracts is the last business day of the contract month. With this change, the monthly contracts will terminate trading prior to the start of the contract month and positions in the monthly contracts will be transformed automatically into strips of positions in the corresponding daily contracts, thereby allowing individual daily positions to be managed separately.

For questions or further information, please contact CME Clearing Services (CCS) at 312-207-2525 or ccs@cmegroup.com.

See the full advisory.

Contact Information